Completion of Initial Field Work Targeting Gold

Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources 8 January 2014 Sula Iron & Gold plc (`Sula' or `the Company') Completion of Initial Field Work Targeting Gold Mineralisation, Sierra Leone Sula Iron & Gold plc, a multi-commodity exploration company focussed on SierraLeone, is pleased to announce the completion of a detailed ground magnetometerand geochemical soil survey over several of its gold targets at its whollyowned 153 km2 Ferensola Project (`Ferensola' or `the Project'). The Project,which is prospective for both iron and gold is located within the northernsector of the Sula-Kangari Greenstone Belt in Sierra Leone. The Companyanticipates receiving the results of the field work by the end of Q1 2014, andintends to use these results to identify future drill targets. Please visit theCompany's website www.sulairongold.com for a map of Ferensola and the goldtarget areas identified. Ferensola is known to host gold mineralisation along deep seated faults,lineaments and shear structures. Five primary gold mineralisation targets havebeen identified to date within the licence area, and it is these targets whichthe recent 2013-2014 field work focussed on. Detailed ground work comprising a15 km2 geophysical and geochemical soil programme were completed. Over 150 linekm of ground magnetic surveying carried out on a 100m line spacing wascompleted to delineate geological structures over two principal target areas -the Lagunda and Yanfarina prospects. Additionally, more than 6,000 soil/regolith samples have been collected on a 100m x 25m grid pattern. Followingthe processing and interpretation of all geophysical and assay results, Sulawill be able to define robust drill targets at these two prospects. The Lagunda and Yanfarina gold prospects are located within the western centralzone of the Project and occur at the peripheries of north-east trendingmagnetic anomalies and interpreted as either lithological contacts and/or largescale faulting. These structural features are very significant as they canoften act as conduits for mineralising fluids and providing model conditionsfor potential primary gold mineralisation. Furthermore, the significant Lagundaartisanal alluvial gold workings occur parallel and coincidently to themagnetic trends and lithological boundaries and are considered to be above orproximal to a primary gold mineralised structure. Importantly, the Project is located a highly prospective area; the greenstonebelt which hosts Ferensola also includes Amara Mining Plc's Baomahun GoldProject, which is located to the south of the Project and has a reportedresource of 2.78 Moz gold (`Au'). Furthermore, in addition to Lagunda andYanfarina prospects, multiple gold targets have been identified which remain tobe explored; historic drilling at the Dalakuru prospect has intercepted hardrock gold mineralisation that is open in all directions, with highs of 8.72m @10.46g/t Au and 1.55m @ 11.68g/t Au. Sula Chief Executive Nick Warrell said, "I am pleased to announce that we havecompleted our 2013-2014 field work programme, which targeted goldmineralisation at our highly prospective, multi-commodity Ferensola Project.With an initial focus on the Lagunda and Yanfarina prospects and furthertargets yet to be explored, I am confident that we are set to significantlyenhance Ferensola's gold resource potential this coming year. Furthermore, Sulacontinues to operate a dual exploration programme and is focussed ondelineating a maiden iron JORC resource later this year. As a result, 2014 isshaping up to be a very exciting time for Sula, and I look forward to updatingshareholders on the results of this gold exploration, in addition to furthernews on our iron ore exploration, in due course." Structural intersections and geochemically anomalous zones within the surveyarea have been initially identified through interpretation of the groundmagnetometer data and precursory analysis of the soil and regolith samples byportable XRF analyser whilst onsite. Selected geochemical samples will besubmitted for full multi-element analysis at ALS Monrovia and ALS Loughrea,Ireland respectively. **ENDS** For further information please visit www.sulairongold.com or contact thefollowing: Nick Warrell Sula Iron & Gold plc +44 (0) 7811 447830 Matt Wood Sula Iron & Gold plc +44 (0) 20 7583 8304 James Caithie / Avi Cairn Financial Advisers LLP +44 (0) 20 7148 7900Robinson Martin Lampshire / David Daniel Stewart & Company Plc +44 (0) 20 7776 6550Hart Felicity Edwards / St Brides Media and Finance +44 (0) 20 7236 1177Charlotte Heap Ltd Notes Sula Iron & Gold plc is a multi-commodity exploration company focussed on WestAfrica. The Company's main objective is to explore and advance its FerensolaProject, in Northern Sierra Leone, which is highly prospective for iron andgold. Sula is currently focussed on delineating a maiden JORC compliant ironresource and proving up the gold mineralisation in 2014, by conducting soilgeochemistry and ground geophysics prior to a diamond drilling programme, inorder to maximise the Licence area's value potential. The 153 sq km licencearea is contiguous to African Minerals' operational Tonkolili Iron Mine, whichhas a JORC compliant resource of 12.8 billion tonnes Fe. Exploration work at the project has confirmed the presence of Banded IronFormation (`BIF') at surface, which has a known strike length of 3.1km. The BIFis proven to extend NE from the Tonkolili licence into Sula's licence area. A2,000m scout drilling programme conducted over a 2.2km section of BIF,confirmed the Licence area's prospectivity for consistently high grade ironmineralisation. An exploration target of 500 million tonnes at 30.4% iron formagnetite and 55% iron for hematite has been given by exploration consultantsSRK Exploration Services Ltd. Significant Greenstone Belt-style gold mineralisation has also been identifiedat various prospects within the licence area. Five target areas for hard rockgold mineralisation have been identified based on the location of historicdrill intercepts, the source areas for alluvial gold deposits, and the positionof major structures as defined by airborne magnetic data and drainageorientation.